Pony AI CFO on Partnership with Uber in Mideast

Bloomberg

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00:00Let me start off with that collaboration with Uber.

00:02Can you give us more details in terms of which markets you're prioritizing,

00:06where and when we're going to see that launch,

00:08and really the business opportunities that you see from this deal?

00:16Great to have this opportunity to talk to you guys.

00:20Yes, so you already see our deal with Uber.

00:24Actually, it underscores our strategy to scaling up.

00:27At the end of last year, we have about 250 robotaxis primarily running in China,

00:34and our strategy is to scaling up.

00:38Just about two weeks ago, we debuted our seventh generation robotaxis in the Shanghai Auto Show,

00:45and we will deploy these new robotaxis in China first, but also including the global market.

00:53So when we are exploring the global market, definitely we're looking into the market

00:58where it would have strong mobility demand, welcome regulation framework, and also strong partnership.

01:07So Uber will be one of our preferred partners to explore these global markets.

01:13We are planning to launch a robotaxis with Uber in Middle East first in this year.

01:21So I would say definitely you will see more and more pony robotaxis running in China

01:26and other global markets in the coming quarters.

01:29When Bloomberg spoke with James Peng, your CEO, in April,

01:36he was concerned about the impact of global tariffs and certainly U.S.-China trade war implications on your business.

01:44Now that that relationship seems to be warming,

01:48do you see more opportunities in the U.S. market for pony AI?

01:51I think globally there is a huge market for robotaxis for sure.

02:01And as a startup, we have always been agile and closely monitoring all things happening,

02:06including the capital market, including the geopolitical area.

02:11So as of right now, I think our primary goal will be in China and also in other global markets,

02:18but not for the U.S. at the moment.

02:20Why is that? Are you seeing greater scrutiny in the U.S.?

02:27How is that business unfolding right now?

02:32So as far as the U.S. market, for sure, it's a very big market.

02:37But if you look at the global scale for China market, other global markets, that will be huge.

02:43And also for a startup, you know, we need to expand our business pace by pace.

02:49And what's our best pace to show up our technology and, you know, business viable.

02:55So I think China probably will be the first one for us to stand out and prove us in the leading position in this robotaxi.

03:05And then later we can expand into more markets.

03:07That's our strategy.

03:08When it comes to business viability, when do you expect to break even or even turn profitable?

03:16I think that's a very good, great question.

03:22And also that's why we're rolling out the seventh gen robotaxies, because these new robotaxies are so cost effective.

03:32We believe with these new robotaxies, we can prove, first of all, on the U.E. level,

03:37they will have a very good U.E. economics, break even, even making some profits.

03:44So once we have this proved, for sure, we'll quickly scaling up with these new robotaxies.

03:51And with our larger fleet of our new robotaxies, that definitely will support a company to break even.

03:57So that's our path towards viability.

04:02How quickly can you scale up when it comes to this WeChat deal?

04:06And is the goal for profitability still 2028, 2029?

04:11Do you have a date or a year in mind?

04:13Has that changed?

04:14So I believe definitely the scale up will coming from, like, hundreds at the end of last year towards thousands and then tens of thousands.

04:28That's the path we'll take.

04:30For sure, this scaling up definitely will take a few years.

04:35So we do have, like James previously mentioned, probably, like, around 22 to 28.

04:40That's how we're targeted to break even for the company.

04:45Leo, you mentioned, of course, the positive view of what can happen with your China business,

04:51but at the same time because of increasing economic pressures in China, not to mention, of course, the growing competition as well.

04:58What are your prospects and the challenges that you could face headed towards that goal of profitability by 28 or 29?

05:05So, well, definitely there is up and down in China's economic, but as you can look, in terms of mobility service, China is still the biggest one.

05:21And also the demand in mobility service is still very, very strong.

05:25That's why we do see, you know, in terms of the total addressable market, especially in China, that's still very, very huge.

05:33And for that huge market, for a company like Pony to make commercial viable, it only needs a small percentage in the mobility service.

05:45Then we can still achieve that goal.

05:47And not to mention, we are also targeting at other global markets.

05:51So I think the room for us to grow and make commercial viable is very huge.

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